— The banks will probably be a little more cautious in this situation. This usually leads to somewhat more restrictive lending, which can be a substitute for future interest rate increases that the Fed needs to make, Yellen says in an interview with CNN that will be broadcast on Sunday.
More cautious banks, on the other hand, are not enough for Yellen to change her general future analysis.
“I still see a future with some growth, a continued strong labor market and declining inflation,” she says.